What does this mean for your money? How should you position now?
According to CNBC’s Rick Santelli the chatter will generate selling, whether its accurate or not. “There is going to be a segment of the market that buys into it,” he says.
However, if you’re one of those investors inclined to sell the Fast Money traders suggest taking a beat before you do.
Karen Finerman cautions not to look at an early end to QE2 in a vacuum. “It could very well be a signal that the recovery is robust,” she reminds and that could drive the S&P higher.
Joe Terranova thinks the chatter is a lot of tempest in a pot of tea; he doesn’t think there’s anyway the Fed ends QE2. Quite simply he thinks there are too many wildcards such as housing, unemployment and oil that still threaten the recovery.
Tim Seymour says much the same. And he reminds, “A weaker dollar is good for the US economy,” he adds.
And if you’re looking for key technical levels to watch, Guy Adami says watch 1275.
That level represents the 2011 low hit at the end of January. "The question is, what happens when we get there," he says.
FINERMAN’S FINE PRINT: AVON
Looking at individual names, trader Karen Finerman has Avon on her radar after the company announced its biggest restructuring in years.
”I’m intrigued,” she says. “I feel like they should be firing on all cylinders and yet something keeps mucking them up.”
”I’m already long, she adds. "This is such a valuable franchise it wouldn’t surprise me if some activist takes a look.”
TICK BY TICK: TARGET
Elsewhere in the market, the traders were closely watching the action in Target which experienced a big intra-day spike after the company posted a 10.5 percent increase in quarterly profit, helped by strong sales early in the holiday season and fewer write-offs of bad credit card debt as shoppers' finances continued to improve.
What should you male of it?
Karen Finerman finds these developments bullish. “They’re very confident in their business even in the face of rising oil.”
Patty Edwards is holding Target. "I think they’re doing all the right things and think it will do well over the long-term. But I also think investors can wait before they jump in."
Guy Adami agrees that valuations are compelling but adds, "you could have said that for a while now."
GM BREAKS BELOW $33 IPO PRICE
GM traded notably lower Thursday with the stock breaking below GM’s IPO price of $33.
What’s the trade?
Tim Seymour says he’s a buyer of weakness and not just in GM. He also likes the pullback in Toyota and Tata.
After the bell the Pentagon came out with its long awaited $35 billion tanker contract decision awarding the deal to Boeing.
Get all the details from Jane Wells. Watch the video now!